In a multiple regression model, the mean of the probability distribution of the error variable e is assumed to be:
A)k , where k is the number of independent variables included in the model.
B)1.0
C)0.0
D)None of these choices.

Question

Quizplus · Accepted Answer

In a multiple regression model, the mean of the probability distribution of the error variable (e) is assumed to be 0. This assumption ensures that the errors, on average, do not systematically overestimate or underestimate the dependent variable.

In a Multiple Regression Model, the Mean of the Probability